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Gold makes another stand

Commentaries & Views

Yesterday we wrote that gold and silver patterns are possibly changing. Both held support again on Tuesday and are now looking to test resistance. This does not mean it’s time to rush in and buy; this pattern suggests observation and patience because the trend is still down.

The current pattern is, in consolidation with the last two days, showing solid support and the possibility that the bottoms are in. The price action has turned neutral to bullish; however, there is still work to be done before we can determine the bottoms are in.

Although the metals have the appearance of change, we will remain short until we can confirm the bottoms are in. There are one of two things that will happen, the bottoms are in and a rally ensues, or this is false hope and the metals could continue the breakdown. Right now, it’s a coinflip.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.